For Bloomberg access:{OIAR<GO>}

Soybeans:

July soybeans lost 2.75 cents on volume of 188,760 contracts. Total open interest increased by 1,475 contracts, which relative to volume is approximately 60% below average. The May contract lost 10,028 of open interest, which makes the total open interest increase more impressive (bearish). As this report is being compiled on April 22, July soybeans are trading 7.25 lower. July soybeans remain on a short and intermediate term sell signal.

Soybean oil:

July soybean oil gained 23 points on volume of 123,472 contracts. Total open interest increased by 620 contracts, which relative to volume is 75% below average. However, the May contract lost 10,338 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in May. We consider the open interest action relative to price on April 21 as bullish. On April 16, July soybean oil generated a short-term buy signal, but remains on an intermediate term sell signal. We have no recommendation.

Corn:

July corn lost 4.75 cents on heavy volume of 416,075 contracts.Volume was the strongest since April 15 when corn advanced 2.00 cents on volume of 476,371 contracts and total open interest declined by 11,134. On April 21, total open interest declined by 5,791 contracts, which relative to volume is approximately 40% below average. However, the May contract lost 21,131 of open interest, which means there were sufficient open interest increases in the forward months to reduce total open interest substantially below average. As this report is being compiled on April 22, July corn is trading 1.25 lower on the day. July corn remains on a short and intermediate term sell signal.

Live cattle:

June live cattle advanced 85 points on volume of 47,623 contracts. Total open interest declined by 2,426 contracts, which relative to volume is approximately 100% above average meaning that liquidation was extremely heavy on the advance. This is bearish open interest action relative to the price advance. The April contract lost 2,089 of open interest, June -3,000. As this report is being compiled on April 22, July cattle is trading 90 points lower and has made a new low for the move at 1.45175, which takes out the previous low for the move made on April 21 of 1.45525.

On April 13, OIA announced that June cattle generated a short-term sell signal, and as yet has not generated an intermediate term sell signal, but we expect it shortly.

Cotton: On April 21, July cotton generated a short-term sell signal, but remains on an intermediate term buy signal.

July cotton lost 40 points on volume of 19,841 contracts. Total open interest declined by 320 contracts, which relative to volume is approximately 35% below average. The May contract accounted for loss of 1,528 of open interest, and there were sufficient open interest increases in the forward months to reduce total open interest substantially below average.As this report is being compiled on April 22, July cotton is trading 4 points higher after making a new low for the move at 62.35, which is below yesterday’s print of 62.86. We have no recommendation.

WTI crude oil:

June WTI crude oil lost $1.27 on volume of 645,479 contracts. Total open interest declined by 8,031 contracts, which relative to volume is approximately 40% below average. The May contract accounted for loss of 20,185 open interest. As this report is being compiled after the publication of the EIA report showing another stock increase, June WTI is trading only 20 cents lower after making a low of 55.73, which is slightly below yesterday’s low of 56.11.We think the market is trading quite well considering the stock build. June WTI remains on a short and intermediate term buy signal. Do not try to pick a top in the market.

The Energy Information Administration announced that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 5.3 million barrels from the previous week. At 489.0 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years. Total motor gasoline inventories decreased by 2.1 million barrels last week, but are above the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories increased by 0.4 million barrels last week and are in the middle of the average range for this time of year. Propane/propylene inventories rose 2.0 million barrels last week and are well above the upper limit of the average range. Total commercial petroleum inventories increased by 9.2 million barrels last week.

Silver: On April 21, July silver generated a short term sell signal after generating an intermediate term sell signal on April 14.During the time that silver was on short and intermediate term buy signals, we discouraged clients from participating in the market due to the bearish head and shoulders pattern on the weekly charts.

July silver gained 11.9 cents on heavy volume of 80,942 contracts. Total open interest increased by 2,926 contracts, which relative to volume is approximately 45% above average meaning a battle ensued between buyers and sellers and buyers were able to move the market fractionally higher.

However, new buyers were not able to move July silver above OIA’s key pivot point of 16.253, and therefore July silver generated a short-term sell signal on April 21. As this report is being compiled on April 22, July silver is trading 23.8 cents lower and has made a new low for the move 15.690.We have no recommendation.

Sugar #11: On April 21, July sugar generated a short-term sell signal, which reversed the April 17 short-term buy signal. July sugar remains on intermediate term sell signal.

July sugar lost 29 points on volume of 153,127 contracts. Total open interest increased by 801 contracts, however the May contract lost 9,012 open interest, which means there were sufficient open interest increases in the forward months to offset the decline in May. Open interest action on April 21 was decidedly bearish relative to the price decline. As this report is being compiled, July sugar is trading 12 points higher on the day. Stand aside.

Cocoa:

July cocoa lost $5.00 volume of 26,114 contracts. Total open interest declined by a hefty 1,233 contracts, which relative to volume is approximately 75% above average meaning liquidation was extremely heavy on the modest decline. The May contract lost 69 of open interest, July -2507, September 2015 -255. In short there was liquidation in the nearby months, however as we pointed out yesterday July cocoa is at a critical inflection point, and will generate a short-term sell signal if the daily high is below OIA’s key pivot point for April 22 of 2755. The daily high on April 22 has been 2829.July cocoa generated a short-term buy signal on April 14 and remains on an intermediate term sell signal.

Coffee:

July coffee advanced 1.45 cents on volume of 27,817 contracts. Total open interest declined by a massive 2,515 contracts, which relative to volume is approximately 250% above average meaning liquidation was extremely heavy on the modest advance. The May contract lost 2870 of open interest, July -286. In short, liquidation was the order of the day as coffee prices advanced. This is bearish open interest action.

As this report is being compiled on April 22, July coffee is trading 1.25 higher, however it is pulling back substantially after making a high 1.4725 in the early part of the session. The inability of coffee to hold its gains is a sign of internal weakness. Additionally, as we pointed out yesterday, July coffee has been unable to make a low above the pivot point after doing so on April 7, the day it generated a short-term buy signal. This is another sign that coffee prices are not headed higher in the short term. The open interest action has been abysmal.We recommend a stand aside posture.